IVI Framework Viewer

Representative POMs are described for Cost Coverage at each level of maturity.

2Basic

• Practice

  Apply an AA model to key IT projects and services.

  Outcome

  The AA model is applied to the most visible IT projects and services initiated by business units.

  Metric

  % of IT projects and services covered by the AA/cost recovery model.

3Intermediate

• Practice

  Apply the AA model across the majority of IT projects and services (including essential IT services such as email, telephony, etc.) and track the key IT costs of business units.

  Outcomes

  • Essential IT services are covered by the AA model.
  • IT and other business units gain a better understanding of the associated IT costs.

  Metric

  % of IT projects and services covered by the AA/cost recovery model.

• Practice

  Apply chargeback accounting at the essential IT service level to standardize IT charges to all business units.

  Outcome

  The IT function is better able to control costs.

  Metric

  % of IT project and service costs charged back to business units.

4Advanced

• Practice

  Expand the AA model's application to all IT projects and services (including subscription and discretionary services).

  Outcomes

  • All IT services are covered by the AA model.
  • The IT function is better able to plan the IT portfolio (e.g. ‘run the business’ IT costs vs. ‘change the business’ IT costs).

  Metrics

  • % of IT projects and services covered by the AA/cost recovery model.
  • Relative IT intensity: [Ratio of IT inputs consumed to staff employed].
  • Relative Value Added: [IT attributable Value Added per IT Resource Unit (VAITRU)].
  • Business Productivity: [Cost per standard business output].

• Practice

  Apply chargeback to all IT services.

  Outcomes

  • Chargeback is embedded as one of several ways that IT shares programme and project level funding with other business units.
  • The IT function is better able to justify the introduction of innovative discretionary services for the business through confidence in cost recovery.

  Metric

  % of IT project and service costs charged back to business units.

• Practice

  Apply all appropriate Global Accounting Alliance (GAA) and other appropriate best practice standards.

  Outcome

  Best practice industry insights are reflected in the organization's approach to IT accounting and allocation.

  Metric

  # of best practice industry standards reflected in the AA/cost recovery model.

5Optimized

• Practice

  Optimize the AA model continually, to ensure that the full scope of IT services is always covered by the accounting model.

  Outcomes

  • By having all IT services covered by the accounting model, the organization can accurately quantify the value provided by IT.
  • This comprehensive and accurate view of IT costs enables the IT function to continually support strategic decisions.

  Metrics

  • % of IT projects and services covered by the AA/cost recovery model.
  • Absolute Value Added: [IT attributable Value created (ITVA) per IT Resource Unit (ITRU)].
  • Net Present Value (NPV) of IT projects.